Catalyst Infrastructure Program

The Catalyst Infrastructure Program (CIP) is a Queensland Government initiative to invest in urban infrastructure that unlocks development, generates construction activity and creates long-term employment.

Under the program, Economic Development Queensland (EDQ) co-invests in infrastructure projects in the form of an interest-free loan.

The government will be seeking repayment of its co-investment so that the funds can be recycled and re-invested. Proponents eligible to apply for CIP funding include: local governments, utility providers and developers.

Frequently asked questions

What is the Catalyst Infrastructure Program (CIP)?

CIP is a government initiative to fund infrastructure that generates, facilitates or accelerates economic benefit.

It involves partnering with local governments, utility providers and select developers to invest in infrastructure projects that unlock development, generate construction activity and create long-term employment.

What is catalyst infrastructure?

This program defines catalyst infrastructure as the construction of physical networks, or ‘hard’ infrastructure, which is necessary to unlock development, generate construction and create long-term employment. The CIP will provide upfront investment to facilitate and accelerate projects which would otherwise be delayed or not proceed.

Projects will involve the construction of new transport, water, wastewater, stormwater and public realm infrastructure. However, other categories of infrastructure will be considered, provided they meet the program criteria.

What is co-investment?

Co-investment is a mechanism between the government and one or more eligible proponents to deliver CIP infrastructure. The level of CIP co-investment required by the proponent(s) will be a consideration in assessing and prioritising each proposed project.

For approved projects, funds will be provided by the government under an interest-free loan arrangement. EDQ will be seeking repayment of its co-investment so that the funds can be recycled and re-invested. Generally, this is achieved through 100 per cent return on the CIP co-investment.

Who is eligible for CIP funding?

CIP funding may be provided to the following entities:

local governments

private utility providers

developers.

What infrastructure projects could be considered for CIP funding?

Projects will involve the construction of new transport, water, wastewater, stormwater and public realm infrastructure. However, other categories of infrastructure will be considered, provided they meet the program criteria.

What will government consider in deciding whether to co-invest in a project?

Proposals will only be deemed eligible if all eligibility criteria are met, as follows:

the project must generate, facilitate or accelerate economic benefit and job creation

the proponent(s) must co-invest between 10 to 50 per cent of the total infrastructure project cost

the proponent(s) must have the capability to deliver the proposed infrastructure project, including appropriate staff, expertise and capacity to manage the project.

the proponent(s) must have the financial capacity to repay the CIP co-investment funding, EDQ may verify this through independent financial checks.

if the project is successful in being approved for CIP co-investment funding, the proponent(s) must comply with the timeframes set out below:

the proponent(s) must execute a CIP funding agreement within three months of the date the project was approved for CIP co-investment funding

the proposed infrastructure project must commence construction within nine months of the date the project was approved for CIP co-investment funding

the proponent(s) must repay the CIP co-investment funding, in annual instalments, over a period of no more than 15 years from the date the CIP funding agreement was executed.

Further to the eligibility criteria, proposed infrastructure projects will be assessed and prioritised according to the extent to which they meet a range of assessment criteria. The CIP assessment process will determine project prioritisation and which projects are successful in attaining CIP co-investment funding.

If a proponent is successful, will they need to enter into an agreement?

Yes. The agreement will set out the Queensland Government's commitment to make the investment and the proponent's commitment to repay the investment over time.

To minimise the government’s liability, the government will not consider any variations to its amount of investment once the agreements have been executed. Variations for the construction works that exceed the funded amount will be the responsibility of the proponent(s).

How and when will CIP funding be paid back to the government?

The Queensland Government is seeking repayment of the investment from co-investors. Depending on the CIP infrastructure proposed, the general rule is that the repayment timeframe is up to 15 years.

Generally, CIP funding will be repaid by the proponent(s) in periodic instalments.

What interest is payable on co-investment?

No interest is payable as the CIP co-investment is provided under an interest-free loan arrangement.

Will the government manage the delivery of the CIP infrastructure?

EDQ (on behalf of the government) will not be responsible for the delivery of the infrastructure.

EDQ (on behalf of the government) will oversee the expenditure of its investment through the establishment of a project control group.

How will CIP encourage development activity?

The CIP will provide co-investment funds to facilitate and accelerate projects which would otherwise be delayed or not proceed due to funding limitations. The infrastructure projects will unlock development, generate construction activity and create long-term employment for the people of Queensland.

Projects will involve the construction of new transport, water, wastewater, stormwater and public realm infrastructure. However, other categories of infrastructure will be considered, provided they meet the program criteria.

How to apply

Proponents may apply for CIP co-investment funding by submitting a project proposal using the Application Form and Reporting Input Sheet on EDQ’s CIP website. Submissions must be complete, must confirm compliance with the CIP eligibility criteria and must address the assessment criteria. Assessment of CIP projects is a continuous process and submissions may be made at any time.